in Kenya — Complete Guide 2026
Everything Kenyan businesses need to know about connecting their ERP system to M-Pesa — from how it works to which ERPs support it and how Gegohub implements it.
ERP with M-Pesa integration in Kenya is the single most impactful automation a Kenyan business can implement in 2026. It is no longer a luxury feature — it is a core operational requirement for any Kenyan business serious about automating its finances. With over 60 million active M-Pesa users across East Africa and approximately 90% of digital transactions in Kenya happening through Safaricom’s M-Pesa platform, businesses that still reconcile M-Pesa payments manually are losing time, making errors, and falling behind competitors.
When your ERP system integrates with M-Pesa, every payment received through Lipa Na M-Pesa, every payroll disbursement, every supplier payment — is automatically recorded, reconciled, and reflected in your books in real time. No more checking SMS notifications, no more manual journal entries, no more end-of-month reconciliation headaches.
At Gegohub Limited, we implement ERP M-Pesa integration in Kenya for businesses across ERPNext, Odoo, Microsoft Dynamics 365, and Sage. This guide explains exactly how ERP M-Pesa integration works in Kenya, which ERP systems support it, and how to get it set up for your business in 2026.
How ERP M-Pesa Integration Works in Kenya
A step-by-step explanation of what happens when your ERP connects to M-Pesa via the Daraja API.
Customer or Employee Initiates an M-Pesa Transaction
A customer pays an invoice via Lipa Na M-Pesa (Paybill or STK Push), or your payroll system initiates a B2C disbursement to an employee’s phone. The transaction enters Safaricom’s network.
Safaricom’s Daraja API Sends a Callback to Your ERP
Within seconds of the transaction completing, Safaricom’s Daraja 3.0 API sends a real-time callback (webhook) to your ERP system’s server containing the transaction details — amount, phone number, M-Pesa receipt number, and timestamp.
Your ERP Automatically Records the Transaction
Your ERP receives the callback and automatically creates a payment entry, matches it to the relevant invoice or payroll record, and updates your accounts receivable or payroll ledger — without any human intervention.
Real-Time Reconciliation Updates Your Books
The payment is instantly reconciled against the outstanding invoice. Your accounts are updated in real time, your cash flow report reflects the new balance, and the customer receives an automatic receipt — all within seconds of the M-Pesa confirmation.
Management Gets Live Financial Dashboards
Your management dashboard shows real-time cash position, outstanding receivables, and payment trends — all automatically updated as M-Pesa payments flow in throughout the day. No waiting for end-of-day reconciliation.
M-Pesa Daraja API Types — Which Does Your ERP Use?
There are four main M-Pesa API flows. Your ERP integration may use one or all of them depending on your business operations.
STK Push — Lipa Na M-Pesa Online
Your ERP sends a payment prompt directly to the customer’s phone. The customer enters their PIN and payment is confirmed instantly — no manual Paybill entry needed.
Used for: Customer invoice payments, online checkoutC2B — Customer to Business
Customers pay your Paybill or Till number manually from their M-Pesa menu. Your ERP receives a real-time callback and automatically reconciles the payment against the right invoice.
Used for: Paybill payments, school fees, utilitiesB2C — Business to Customer
Your ERP initiates payments from your business M-Pesa account to employees’ or suppliers’ phones. Used for payroll disbursement, refunds, and supplier payments.
Used for: Payroll, supplier payments, refundsB2B — Business to Business
Transfer funds between two M-Pesa business accounts — used for inter-company payments, paying larger suppliers, and business-to-business transactions in your ERP.
Used for: Inter-company transfers, large supplier paymentsERP Systems with M-Pesa Integration in Kenya 2026 — Reviewed
How each major ERP system handles M-Pesa integration for Kenyan businesses in 2026.
ERPNext — Best ERP for M-Pesa Integration in Kenya
ERPNext is the most widely deployed solution for ERP M-Pesa integration in Kenya, thanks to its open-source architecture that makes custom Daraja API integrations straightforward and cost-effective. Gegohub Limited has implemented ERPNext M-Pesa integration for numerous Kenyan businesses across retail, manufacturing, distribution, and NGO sectors — covering STK Push, C2B Paybill reconciliation, and B2C payroll disbursement in a single unified system.
- STK Push automatically triggers payment prompts to customer phones from invoices
- C2B callbacks reconcile Paybill payments against invoices in real time
- B2C payroll disburses salaries directly to employee M-Pesa accounts from payroll module
- All M-Pesa transactions posted automatically to the correct GL accounts
- M-Pesa receipts attached to payment entries for easy audit trail
- Works alongside KRA eTIMS — payments trigger automatic tax invoice submission
Odoo — Best ERP M-Pesa Integration for Retail & eCommerce Kenya
Odoo’s M-Pesa integration is particularly powerful for Kenyan retail and eCommerce businesses because it connects M-Pesa directly to Odoo’s built-in online store, POS, and accounting modules. When a customer completes an M-Pesa payment on your Odoo-powered website, the order is instantly marked as paid, stock is updated, and the receipt is sent — all automatically. Gegohub Limited implements Odoo with full M-Pesa Daraja integration for Kenyan businesses.
- M-Pesa payment gateway embedded directly in Odoo online store checkout
- POS terminal accepts M-Pesa STK Push payments at the point of sale
- Automatic stock deduction and receipt generation on M-Pesa confirmation
- Full accounting integration — payments post to correct GL accounts automatically
- M-Pesa refunds processed via B2C directly from Odoo credit note
- Works with Odoo’s multi-currency for businesses accepting both KES and USD
Microsoft Dynamics 365 Business Central
Microsoft Dynamics 365 Business Central supports M-Pesa integration through custom API connectors built by Gegohub Limited. For Kenyan mid-market businesses already using Microsoft tools, adding M-Pesa integration to Business Central provides a seamless experience where M-Pesa transactions flow directly into the Microsoft financial ecosystem — including Power BI dashboards and Excel reconciliation reports.
- M-Pesa transactions sync directly into Business Central general ledger
- Power BI dashboards show real-time M-Pesa collection analytics
- Automatic bank reconciliation matching M-Pesa statements to GL entries
- Multi-currency support for businesses trading in KES and USD
- Integration works alongside Microsoft Teams and Outlook notifications
Sage 300 / Sage Business Cloud
Sage 300 and Sage Business Cloud both support M-Pesa integration through Gegohub’s custom connector, making them strong choices for Kenyan distribution, wholesale, and manufacturing businesses that need reliable M-Pesa payment reconciliation alongside Sage’s industry-leading multi-currency financial management.
- M-Pesa collections reconciled against Sage customer accounts automatically
- Multi-currency reconciliation for import/export businesses in Kenya
- Supplier payments via B2C from Sage accounts payable module
- Full audit trail of all M-Pesa transactions within Sage
- Trusted by Kenyan auditors and financial institutions
Requirements for ERP M-Pesa Integration in Kenya — Checklist
Requirements from Safaricom and your business before Gegohub can set up your ERP M-Pesa integration.
- Registered M-Pesa Paybill or Till Number — you cannot use a personal M-Pesa line for ERP integration. Apply at Safaricom Business if you don’t have one — takes 2–3 weeks.
- Business Registration Certificate — Safaricom requires a valid Certificate of Incorporation or Business Registration to approve your Daraja production credentials.
- Business Bank Account — required for M-Pesa Head Office account setup, which enables Daraja API access. A bank confirmation letter is needed.
- Daraja Developer Account — register at developer.safaricom.co.ke. Gegohub handles this on your behalf as part of the implementation.
- Publicly Accessible Server with SSL — Safaricom’s Daraja callbacks require a live HTTPS server. Localhost does not work in production. Gegohub handles your hosting setup.
- Allow 3–10 Business Days for Daraja Approval — Safaricom reviews your integration before granting production access. Gegohub submits the application and follows up on your behalf.
ERP M-Pesa Integration Comparison — Kenya 2026
| ERP System | STK Push | C2B Paybill | B2C Payroll | Auto-Reconcile | Integration Cost | Gegohub Partner |
|---|---|---|---|---|---|---|
| ERPNext | ✓ | ✓ | ✓ | ✓ Real-time | KES 40–80K | ✓ Partner |
| Odoo | ✓ | ✓ | ✓ | ✓ Real-time | KES 60–100K | ✓ Partner |
| MS Dynamics 365 BC | ✓ | ✓ | Partial | ✓ Real-time | KES 80–150K | ✓ Partner |
| Sage 300 | ✓ | ✓ | ✓ | ✓ Real-time | KES 70–120K | ✓ Partner |
| Oracle NetSuite | ✓ | ✓ | Partial | ✓ | KES 150K+ | — |
| Zoho Books | Partial | Partial | ✗ | Manual | KES 20–40K | — |
| QuickBooks Online | ✗ | ✗ | ✗ | Manual only | N/A | — |
Frequently Asked Questions — ERP M-Pesa Integration Kenya
Ready to Automate Your M-Pesa Payments?
Gegohub Limited implements ERP M-Pesa integration in Kenya for businesses across ERPNext, Odoo, Microsoft Dynamics, and Sage — including KRA eTIMS compliance and payroll disbursement. Get a free consultation and quote today.
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